Turkey, Russia agree to strengthen energy cooperation with major joınt projects

Russian Prime Minister Vladimir Putin paid a one-day official visit to Ankara yesterday. Putin's talks focused on further improving bilateral energy cooperation, as well as exchanging views on regional issues such as the the Southern Caucasus, ongoing efforts to normalize relations between Turkey and Armenia, and the Nagorno-Karabakh issue. Putin had a face-to-face meeting with his Turkish counterpart Recep Tayyip Erdogan, followed by a luncheon hosted in Putin's honor by Erdogan. The two premiers later signed a number of cooperation protocols on natural gas and oil, as well as in such areas as peaceful nuclear energy programs, nuclear accidents, construction of nuclear plants, fishery products, and customs transaction. The two countries also agreed to conduct cultural exchange programs on education, science, youth and sports. Energy talks between Erdogan and Putin, and the protocol signing ceremony, were also joined by Italian Prime Minister Silvio Berlusconi, as several leading Italian energy companies seek to participate in planned energy projects between Turkey and Russia under the protocols. One of them promises Turkish support for a major Russian natural gas pipeline project that Moscow wants to build to maintain its strong position in the European energy market. Erdogan and Putin signed the deal for the construction of part of the South Stream pipeline through Turkish territorial waters in the Black Sea. The 900-kilometer pipeline is set to eventually run from Russia to Bulgaria under the Black Sea before delivering gas to consumers in Europe. The pipeline, with an annual capacity of 63 billion cubic meters, is planned to be operational in 2016, at a cost of $11.6 billion. The deal with Turkey would give Russia a clear path to reach Bulgaria while avoiding Ukrainian waters. Ukraine, a major transit country for transporting Russian natural gas to Europe, was at the center of a price dispute this January that led to Russia shutting off gas supplies through Ukraine. In exchange for Ankara's participation in the project, Moscow gave its support to several Turkish energy projects, including a planned pipeline from the Black Sea town of Samsun to the Mediterranean oil hub of Ceyhan. The pipeline would carry Russian oil and provide an alternative route to the congested Bosporus Strait. Putin and Erdogan also agreed to expand the capacity of another Russian gas pipeline link crossing the Black Sea to Turkey, Blue Stream. Blue Stream's current capacity is 16 billion cubic meters a year. Ankara also won Moscow's consent to extend contracts on natural gas imports for 20 years. Turkey is a major importer of natural gas from Russia. Separately, Turkey's Calik Holding struck a deal with Russian energy giant Gazprom to cooperate in such sectors as energy and construction. Putin was also received by President Abdullah Gul at the Cankaya Presidential Palace. Foreign Minister Ahmet Davutoglu attended the closed-door meeting as well.